Covid 19 and boat prices

[jac]

Many posters on this thread have got the future position correct.
There will be far more 'clearing of the decks' and asset realisation happening, not just on the yachting arena. that lovely cottage in Brittany or Umbria will be offered up to realise capital. That treasured classic car will go under the hammer.
There will so much less distributable income available that those who can buy will be embarrassed by the bounty on offer.
Those selling will, initially, believe their asset is worth top dollar. So sales will be advertised at unattainable levels.
Two or three months on, as desperation bites,and ongoing costs continue, the light will dawn and prices will begin to fall.

Do you bite at the first seeming bargain, or hold your nerve until the price is really unrepeatable?

Don't forget. Most people who want a yacht, will already have one. So the influx of boats on the market are oversupplying the need.

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I suspect that many will not want to start looking until things ease further. For a start the logistics are harder to manage when going to view and secondly, how many may have fears for their own jobs or might anticipate prices falling anyway.

the second issue is time. Assuming that a purchaser wants a survey that results in some follow up quotes before agreeing a price you might easily go a month from first looking at the boat to taking ownership. One then has to get the boat to her new berth and of course at the moment no-one should be staying away from home.

Given the time lag and inability to use properly yet, at what point does a prospective purchaser decide that there is no point hurrying to get a boat this season anyway, avoid the cost / risk over the winter and instead decide they will buy in time for next season

 

[Spyro]

I suspect that many will not want to start looking until things ease further. For a start the logistics are harder to manage when going to view and secondly, how many may have fears for their own jobs or might anticipate prices falling anyway.

the second issue is time. Assuming that a purchaser wants a survey that results in some follow up quotes before agreeing a price you might easily go a month from first looking at the boat to taking ownership. One then has to get the boat to her new berth and of course at the moment no-one should be staying away from home.

Given the time lag and inability to use properly yet, at what point does a prospective purchaser decide that there is no point hurrying to get a boat this season anyway, avoid the cost / risk over the winter and instead decide they will buy in time for next season

I think that is what most potential buyers will be doing so if you are hoping to sell this year it will have to be at a very good price. (for the buyer).

 

[Koeketiene]

It's irrelevant really, the market is already depressed, the smaller and older the boat the more depressed it is to the point where some are now giving boats away. I think all you can say for now is that everything is on hold.

1. Boat prices have certainly taken a tumble. Bought mine in March for just over half the asking price.
2. I don't agree that everything is 'on hold'. Just had a look at the boats that were on previously on my shortlist: more than three quarters of them are now listed as 'sale pending' or 'sold' which leads me to believe that due to falling prices trading is actually quite brisk.

Consider myself very lucky to have concluded the sale of my previous boat in January.

 

[[159032]]

It is a time for holding back.
Yes, you may miss a fabulous opportunity. But there will be another, possibly even better, coming along soon.

 

[Koeketiene]

It is a time for holding back.
Yes, you may miss a fabulous opportunity. But there will be another, possibly even better, coming along soon.

I respectfully disagree.
None of us are getting any younger and you can't buy time.
If you have the cash available (you don't have to sell another boat to buy the next one) then there is no better time than right now.
Rather that than wait for a year and ponder 'I should have...'.

 

[V1701]

1. Boat prices have certainly taken a tumble. Bought mine in March for just over half the asking price.
2. I don't agree that everything is 'on hold'. Just had a look at the boats that were on previously on my shortlist: more than three quarters of them are now listed as 'sale pending' or 'sold' which leads me to believe that due to falling prices trading is actually quite brisk.

Consider myself very lucky to have concluded the sale of my previous boat in January.

That was posted just over two months ago, things have certainly moved on a bit...

 

[jac]

I respectfully disagree.
None of us are getting any younger and you can't buy time.
If you have the cash available (you don't have to sell another boat to buy the next one) then there is no better time than right now.
Rather that than wait for a year and ponder 'I should have...'.

Agree that waiting a year is a waste. But i'm a cash buyer but i won't be going into the market yet. Too many boats still at ridiculous prices, no guarantee that even if you buy you will get to use this year, no idea of the economic consequences of Covid, no idea if there will be a second spike. End of the year maybe . But then i'm 52 so hopefully 20-30 more years. if you're 70 already then can see why you may as well pile in now.

 

[langstonelayabout]

Too many boats still at ridiculous prices, no guarantee that even if you buy you will get to use this year, no idea of the economic consequences of Covid, no idea if there will be a second spike.

Yes, The boat I made offers on last year is still on the market at the same price as last August and has had numerous viewings and a sale fall through. Again I've offered a reasonable price (compared with sales of the same design of 30' boat) only to be refused again.

Some people simply don't want the money and are happy to use their boats as a man shed whilst maintaining their boat and paying marina fees. Amusingly the agent did say that he wouldn't accept my offer, and also was determined to have his boat launched and returned to it's marina space. So to survey now will cost anyone an additional £500 in lifting and moving fees. Words fail me.

I do wonder when he'll sell it...

 

[jac]

Yes, The boat I made offers on last year is still on the market at the same price as last August and has had numerous viewings and a sale fall through. Again I've offered a reasonable price (compared with sales of the same design of 30' boat) only to be refused again.

Some people simply don't want the money and are happy to use their boats as a man shed whilst maintaining their boat and paying marina fees. Amusingly the agent did say that he wouldn't accept my offer, and also was determined to have his boat launched and returned to it's marina space. So to survey now will cost anyone an additional £500 in lifting and moving fees. Words fail me.

I do wonder when he'll sell it...

We sold ours a while ago ( have built a house extension in between) and i've been idly looking since then and i see countless boats languishing on brokers sites for a couple of years. I sublet my mooring to one guy 2 years ago whose 34 foot boat was on sale. It's still on the market, same price. I also notice that sun sail have taken £10-£15k off the price of the boats they've been selling over the winter and most have gone. Does make you wonder how many are only for sale "politically" so that the husband can say to the wife - it's on the market, i will sell it but i need to maintain it, make it look nice otherwise it won;t sell. Oh and whilst it's in and we're paying for it, i may as well use it.

 

[Koeketiene]

We sold ours a while ago ( have built a house extension in between) and i've been idly looking since then and i see countless boats languishing on brokers sites for a couple of years. I sublet my mooring to one guy 2 years ago whose 34 foot boat was on sale. It's still on the market, same price. I also notice that sun sail have taken £10-£15k off the price of the boats they've been selling over the winter and most have gone. Does make you wonder how many are only for sale "politically" so that the husband can say to the wife - it's on the market, i will sell it but i need to maintain it, make it look nice otherwise it won;t sell. Oh and whilst it's in and we're paying for it, i may as well use it.

There are also people who have an unrealistic view of what their boat is 'worth'.
I paid so much for her, spent this much on upgrades/refit so she's worth the sum of both amounts.
This is never the case.
Boats are a depreciating asset. By spending money on upgrades/refit the best you can hope for over the years is to slow the rate of depreciation.
Well cared for boats realistically priced will sell quickly - even these days.

 

[newtothis]

I don't get boat pricing at all. Tired old Centaurs etc from the 1970s are on the market in the 5k-10k range. Compare what you can buy in the second-hand car market for that price. Yet boat owners seem to think their Austin Allegro is a Porsche.

 

[Stemar]

Yes, The boat I made offers on last year is still on the market at the same price as last August and has had numerous viewings and a sale fall through. Again I've offered a reasonable price (compared with sales of the same design of 30' boat) only to be refused again.

Some people simply don't want the money and are happy to use their boats as a man shed whilst maintaining their boat and paying marina fees. Amusingly the agent did say that he wouldn't accept my offer, and also was determined to have his boat launched and returned to it's marina space. So to survey now will cost anyone an additional £500 in lifting and moving fees. Words fail me.

I do wonder when he'll sell it...

"Yes, Dear, I know you want me to sell the boat, and I'm really trying, but it's hard at the moment - So many time-wasters and the one guy that was going to take it backed out. If you don't believe me, just look at this thread on Scuttlebut..."

 

[[165264]]

1. Boat prices have certainly taken a tumble. Bought mine in March for just over half the asking price.
2. I don't agree that everything is 'on hold'. Just had a look at the boats that were on previously on my shortlist: more than three quarters of them are now listed as 'sale pending' or 'sold' which leads me to believe that due to falling prices trading is actually quite brisk.

Consider myself very lucky to have concluded the sale of my previous boat in January.

If you don't mind telling, what sort of boat was it? In terms of size and age? How did you manage to get it so cheaply? With a low offer to start with? This is the area where I would need help.

 

[[165264]]

Back in the days when I was into riding, and looking for a horse, there were one or two that seemed nice, but then turned out not to be right. I was philosophical and said, "There's always another horse". And there was too.

 

[Koeketiene]

If you don't mind telling, what sort of boat was it? In terms of size and age? How did you manage to get it so cheaply? With a low offer to start with? This is the area where I would need help.

The boat's a 1977 Standfast 36.
Standfast 36 - PJ Yachting
She had been on my radar for a some time, but I had discarded her as 'too expensive'.
I actually went to view another boat which was within my budget but turned out to be a bit of a disapointment.
Then the broker, who did the viewing, said he had a similar boat in the same marina he could show us.
Told him I was aware of the boat but that she was beyond our means.
He confided that in his opinion, the owner might accept a low offer.
As we had no other plans that day we agreed to go and view the boat.
I liked the boat a lot (and if not more important - so did the wife) and duly made an offer.
Told the broker it was a take it or leave it offer and not the start of negotiations.
Broker withdrew to contact the seller.
Half an hour later, we had bought ourselves a boat.
Subsequent survey confirmed she was indeed in top condition - far better than could be expected for a boat her age.

 

[[165264]]

The boat's a 1977 Standfast 36.
Standfast 36 - PJ Yachting
She had been on my radar for a some time, but I had discarded her as 'too expensive'.
I actually went to view another boat which was within my budget but turned out to be a bit of a disapointment.
Then the broker, who did the viewing, said he had a similar boat in the same marina he could show us.
Told him I was aware of the boat but that she was beyond our means.
He confided that in his opinion, the owner might accept a low offer.
As we had no other plans that day we agreed to go and view the boat.
I liked the boat a lot (and if not more important - so did the wife) and duly made an offer.
Told the broker it was a take it or leave it offer and not the start of negotiations.
Broker withdrew to contact the seller.
Half an hour later, we had bought ourselves a boat.
Subsequent survey confirmed she was indeed in top condition - far better than could be expected for a boat her age.

Thank you. That's the most helpful reply I've ever had here. And there are some "honest", or perhaps "motivated" brokers too! (i,e. Motivated to get the sale done. )

 

[Koeketiene]

Thank you. That's the most helpful reply I've ever had here. And there are some "honest", or perhaps "motivated" brokers too! (i,e. Motivated to get the sale done. )

For a broker, any sale is a good sale.
Later learned that the seller already had bought his 'new' boat (from the same broker), so that might also have had something to do with it.

 

[[159032]]

I don't get boat pricing at all. Tired old Centaurs etc from the 1970s are on the market in the 5k-10k range. Compare what you can buy in the second-hand car market for that price. Yet boat owners seem to think their Austin Allegro is a Porsche.

Exactly. I notice a rash of older boats have appeared on the market in the last week or so. Mainly at bonkers prices. Small boats with no trailer, baggy sails, no motor, etc.

These people are still in the "I've got a great boat and won't sell it for peanuts" stage of the process. In reality most of them will never sell them. Better boats with some desirability and smart (and in commission) are still a bit dear, but it will take 3 months or more for the owners to accept they are not going to get their Rolls Royce price for their Ford Focus.
I still have the same opinion. Unless you are desperate to close a deal, hang on a bit.
Whilst I look at day-sailer type boats, the same applies to bigger boats. Each type has it's own market, but human nature demands that sellers over-value and buyers see value differently. In these coming months and years the buyers will be in charge.

.

 

[Old Harry]

Exactly. I notice a rash of older boats have appeared on the market in the last week or so. Mainly at bonkers prices. Small boats with no trailer, baggy sails, no motor, etc.

These people are still in the "I've got a great boat and won't sell it for peanuts" stage of the process. In reality most of them will never sell them. Better boats with some desirability and smart (and in commission) are still a bit dear, but it will take 3 months or more for the owners to accept they are not going to get their Rolls Royce price for their Ford Focus.
I still have the same opinion. Unless you are desperate to close a deal, hang on a bit.

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Are you in the market for a yacht,after all those years as a lounge lizard

 

[doug748]

I think that boat prices are on the way down but to all the folk who have been looking for ages and find boat prices at silly levels........

...........you may have to face the possibility that your budget is too small and always was.

If you are scratching around for a few grand, bear in mind it's the running costs that kill you.

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